InfoVest21 Funds of Funds Survey
Infovest21 Survey: Funds of funds continue to lose appeal relative to direct investing.
In Infovest21’s just-released quarterly sentiment survey of investors, 31% of the investors said they expect to increase their hedge fund allocation while decreasing their funds of funds allocation. 42% don’t expect any change. None expected to increase the funds of funds’ allocation while decreasing the hedge fund allocation.
These responses reflected a change from the prior quarterly survey when two-thirds of the investors said the expected no change and only 10% expected to increase their hedge fund allocations while decreasing that of funds of funds. At that time, 5% planned to increase their allocation to funds of funds.
Other highlights of the survey included:
- 44% of the investors feel managers have the upper hand in the relationship between investors and managers while only 19% feel an equal balance exists.
- The largest percentage, 48%, said they do not plan to increase their hedge fund allocation over the next 12 months. Another 15% said they plan to increase allocations significantly and 19% plan to increase slightly.
This reflects a noticeable change from the prior quarterly survey where the largest percentage, 52%, said they planned to increase hedge fund allocations while one-third planned no change.
- Of the various strategies, investors remain the most positive about event driven/special situation over the next three months – 27% of the investors are “very positive.” Event driven/special situations had the highest rank last quarter as well.
- Of the 22 strategies asked about, the majority of investors felt “somewhat positive” about 12 over the next three months, “neutral” about 8, and “somewhat negative” or “very negative” in two. In the prior quarter, investors were “somewhat positive” about six strategies and “neutral” about 16.
Energy, distressed, event driven/special situations, global macro and multi-strategy were among those strategies investors were “somewhat positive” about.
Additional details on investors’ rankings of the various strategies over the next three and twelve months are available in the current issue of Investor Focus.